Waikato Times

Political spat erupts while CEO on leave

The on leave CEO is still being paid up to $13,000 a week as opposition politician­s says ‘I told you so’ over the mega polytech’s problems. Stephen Ward reports.

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The chief executive of underfire mega polytech Te Pū kenga continues to earn up to $13,000 a week on ‘‘special leave’’ – while Labour and National are at loggerhead­s – after a highly critical report on the new Hamilton-headquarte­red organisati­on.

Te Pū kenga confirmed yesterday that the organisati­on’s CEO Stephen Town is on paid leave. The organisati­on’s annual report last year indicates Town may be paid between $670,000 and $679,999 a year, or up to more than $13,000 gross a week.

By comparison, Prime Minister Jacinda Ardern is reportedly earning just over $470,000 annually.

National tertiary education spokespers­on Penny Simmonds said the Government was warned by education leaders that Te Pū kenga was the wrong model for Aotearoa.

A former long-term chief executive at the Southern Institute of Technology, her comments came after a very critical Tertiary Education Commission (TEC) report to Education Minister Chris Hipkins, which warned of a ballooning $110 million annual deficit – $53.5m more than budgeted.

This was largely due to lower enrolments and there were concerns the deficit could go even higher.

Simmonds said senior sector CEOs, including herself, told Hipkins the model for Te Pū kenga was wrong and their warnings had ‘‘come to pass’’.

‘‘He has pulled the whole sector down to the lowest common denominato­r,’’ she said.

The reforms had failed to address the problems of institutio­ns having difficulti­es while the good performers had lost incentives to do well because they were now part of an allinclusi­ve entity, she claimed.

Also, around 180 head office jobs had been establishe­d.

‘‘He [the minister] has created this massive bureaucrac­y at head office,’’ she said.

‘‘This is a whole new layer of non-teaching bureaucrac­y.’’

There was also talk of up to 600 redundanci­es in the sector, although this had not been confirmed.

Simmonds said about $200m had been spent setting up Te Pū kenga.

She had no additional informatio­n on why Te Pū kenga

CEO Town had gone on special leave late last week but added: ‘‘I think the minister has set Te Pū kenga an unachievab­le task, so it’s always going to fail regardless of who is leading it.’’

National planned to keep asking written and oral parliament­ary questions about Te Pū kenga and to push for going back to the old system and deal individual­ly with institutio­ns facing problems. That should have been the way things were handled in the first place, Simmonds said.

Stuff asked Hipkins how confident he is problems Te Pū kenga is facing will be sorted out in a timely way, how it will fund the bigger deficit it faces and whether he knew why more progress hadn’t been made, but he didn’t reply directly.

‘‘I’ve made my expectatio­ns clear and know Te Pū kenga is working hard on the transition,’’ he said in a statement.

‘‘I’ve also been clear the projected deficit was too high and that more work needed to be done there.’’

On Simmonds’ criticism, he said: ‘‘National’s approach would lock in deficits and not fix the underlying issues. Under the old model, long-term deficits were projected, rising to up to $156 million in 2022.

‘‘When Labour came into government we had to pump around $100 million into a number of polytechni­cs just to keep the lights on. The model was unsustaina­ble.’’

Asked about whether on ‘‘special leave’’ chief executive Town was still being paid, why he was on leave and for how long, and whether he was contributi­ng at all to Te Pū kenga’s business at the moment, Hipkins deferred to Te Pū kenga to answer.

On whether Town is continuing to have any input into Te Pū kenga business on leave, a Te Pū kenga spokespers­on said: ‘‘He will be fully stepping away from Te Pū kenga for the duration of his leave.’’

Asked, given the public interest, whether more could be said about the reason for Town being on leave and when he might return, the spokespers­on said: ‘‘Mr Town is on leave for personal reasons and so appropriat­ely we will be respecting his privacy.’’

No complaints had been raised with Te Pū kenga about his conduct while chief executive, the spokespers­on said.

 ?? TOM LEE/STUFF ?? Te Pū kenga chief executive Stephen Town remains on ‘special leave’ after a report raised
significan­t concerns about the Hamilton-headquarte­red mega polytech.
TOM LEE/STUFF Te Pū kenga chief executive Stephen Town remains on ‘special leave’ after a report raised significan­t concerns about the Hamilton-headquarte­red mega polytech.
 ?? ?? Creating Hamilton-headquarte­red Te Pū kenga was the wrong move, says the National Party, in the wake of a concerning report about the new mega-polytech for Aotearoa.
CHRISTEL YARDLEY/STUFF
Creating Hamilton-headquarte­red Te Pū kenga was the wrong move, says the National Party, in the wake of a concerning report about the new mega-polytech for Aotearoa. CHRISTEL YARDLEY/STUFF
 ?? ?? Education Minister Chris Hipkins has hit back at National’s criticism, saying their approach would lock in deficits and not fix underlying problems.
Education Minister Chris Hipkins has hit back at National’s criticism, saying their approach would lock in deficits and not fix underlying problems.
 ?? ?? National MP and former chief executive of the Southern Institute of Technology Penny Simmonds says it’s a case of ‘we told you so’ over Te Pū kenga.
National MP and former chief executive of the Southern Institute of Technology Penny Simmonds says it’s a case of ‘we told you so’ over Te Pū kenga.

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